It’s true that trading forex is easy, if not the best way to earn money today. However, it can also be difficult for those who are just starting out. Here are the four most important factors you should consider when selecting the best forex day trading for forex traders who are just starting out.
History of Registration:
Naturally, “forex scams” are not something that any trader is interested in. It is important to check whether your broker has been registered with the appropriate authorities. Check if the forex broker you’ve chosen is registered. For brokers in the United States, this would be the NFA or Commodities Futures Trading Commission.
Look at the Forex Brokers’ history. The brokers with the most success in the business have gained the trust of their Clients. If you look online at forums that discuss about a particular broker, you will be able see this information.
When you trade forex, your forex broker is compensated by Spreads. Forex brokers collect spreads during trades, whether they are profitable or not. Spreads may be as high at 10pips and as low as 1pip depending on the broker. Check if you forex broker has huge Spreads applied to their customer’s accounts. Forex brokers should ideally use spreads below 2pips.
Simplicity in the trading platform:
Brokers are often very complex, with many different trading tools. The beginner is often left confused as he doesn’t know where or how to start. In order to facilitate the easy and quick execution of trades, brokers should have simple platforms. It is for this reason that i wrote an article on how to pick a forex broker who has a simple platform.
Practice makes perfect:
To avoid losing real money, you should not jump right into trading live with actual funds as a newbie in the foreign exchange market. It is best to test your trading skills before you start trading with real money. It is important to select a broker offering demo trading, which includes virtual funds. While most brokers provide demo trading to their traders, not all of them offer the funds necessary for practicing.